TSX posts biggest weekly gain since July as rate hike fears ebb
Reuters
Published Oct 21, 2022 07:10AM ET
Updated Oct 21, 2022 04:56PM ET
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rose on Friday to its highest closing level in more than two weeks, including gains for resource and financial shares, as investors became more comfortable with the outlook for higher interest rates.
The Toronto Stock Exchange's S&P/TSX composite index ended up 281.66 points, or 1.5%, at 18,860.95, its highest closing level since Oct. 6.
The index was up 2.9% for the week, its biggest weekly gain since July.
U.S. stock indexes also climbed on Friday after a report said the Federal Reserve will likely debate on a smaller interest rate hike in December.
Stock markets globally have been hammered this year by worries aggressive central bank tightening to subdue inflation will derail economic activity.
"The bad news is mainly focused on interest rates and inflation," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth. "Despite that, market action over the last couple of weeks suggest that investors are taking these risks in stride."
"Market action also seems to suggest we've been trying to find a bottom here," Picardo added.
The Toronto market's energy sector rose 1.7% as oil prices settled 0.6% higher at $85.05 a barrel.
The materials group, which includes precious and base metals miners and fertilizer companies, added 3.2% as gold and copper prices rose, while heavily-weighted financials ended 1.4% higher.
Domestic data showed retail sales growing 0.7% in August, blowing past expectations of an increase of 0.2%.
"Canadian economic numbers were decent," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"There's really nothing standing in the way of the Bank of Canada to continue their program of raising interest rates."
Money markets expect the BoC to raise interest rates by three-quarters of a percentage point to a 14-year high of 4% at a policy decision next Wednesday.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.